Your Lawyer Called - Should You Expect a Subscription Instead of an Invoice?

The legal industry and the profession of law is one of the oldest in the world. However, to keep up with head-turning technology and rapid trends, the legal field has had to adapt, and quickly. Most recently, the traditional hourly billing model has come into question; clients are looking for more transparency and services driven by value rather than time. (LMTG Local) With this, alternative free arrangements like “flat fees, subscription models, and success-based billing” (LMTG Local)  are on the rise. Shifting billing approaches enable firms to focus on “client outcomes” and underscore the importance of how they are going to “deliver value.” (Bloomberg). Even more, firms can manage costs more effectively.

An in-practice example is Fish & Richardson, a U.S.-based law firm that mainly handles patent litigation. Fish & Richardson provides various fee-models for clients including a fixed fee, collared rate, blended rate, holdback with success bonus, and hybrid fee arrangements. Fish & Richardson prides themselves on these arrangements, as they “ incorporate[] decades of data and cutting-edge, proprietary budgeting tools to develop thoughtful, value-based budget options for [their] clients.”

Ultimately, this raises the question: Is the practice of law now operating more on the client’s terms when it comes to billing? As the profession continues to reshape itself around consumer expectations, the billable hour should be nervous.